Is Pepco's Math Correct?

[arwalden]

I received a letter from Pepco (Potomac Electric Power Co.) that informs me of a rate increase from $0.0649 per KWh to $0.1008 per KWh.

Several times in the letter, they describe this increase as being a 38% increase. It's not a typo, because it's repeated several times... but I don't understand how they arrived at 38%.

If you multiply $0.0649 by 1.38, the total is $0.0895.

I'm no whiz with a calculator, but the increase appears to be about 55% more than the original rate.

Am I doing something wrong? Is my math incorrect, or is Pepco pulling a fast one? What math games and trickery are they using? Help me to understand.

~Allen



Web version of the letter I received:
http://www.pepco.com/home/choice/md/sosphasein/

(I see that the web version says 39% increase... but still, that math doesn't work either.)


Rates:
http://www.pepco.com/home/choice/md/compare/

[kay1864]

1. You're correct, their math is wrong

Maybe because they say "average" rate increase? Either way, they should have gotten the rate in *your* letter correct. Sounds like they were too lazy to customize their letters.

[arwalden]

3. Hmmm... I Just Tried Something....

Their new rate is $0.1008 per KWh. I *subtracted* 38% from that and got $0.0624 ... that's pretty close to the current rate.

The OLD rate is 38% less than the NEW rate... but they are trying to "sell-it" as being a "38% increase". But it's NOT!!!

It's a 55% increase!!

The fuckers!!

Okay... never mind. I figured out what they are doing. Geeze! What scum!

[underpants]

2. They are wrong and I had a similiar situation recently

.1008 - .0649 = .0359

.0359 / .0649 = .5531587057

or 55%

Our gas rate went from .987 per ccu (unit) to 1.579 per ccu. I called the city to check on it and they said that the regular usage in our house (this was our first winter there) was just like it had always been (looking at past usage) and plus you know it was a cold December.....HOLD IT no it wasn't. I said this to the woman on the other side of the call.

"oh yes it was don't you remember?"

"Yeah I remember. I remember commenting about not hardly needing a jacket. I remember that it was cold for about one weekend."

I said all this in a joking manner and she started laughing.
---this is where DU and monitoring the BS coming out of DC pays off--

I asked her "Are you all being told to say that?"

She was still laughing and let it slip "Yeah we were"

They were told to do this so people wouldn't be as upset about their huge gas bill.

True story. Just a few months ago.